EU Member States discussed on Tuesday 25 January a concept paper of the French Presidency of the Council of the EU (FPEU) on creating a level playing field for a sustainable air transport sector (‘RefuelEU Aviation’) (see EUROPE 12868/8).
Specifically, the FPEU invited the EU Member States - some of which insisted on the need to maintain connectivity and competitiveness of the sector - to reflect on the impact of the measures foreseen by ‘ReFuelEU Aviation’.
As a reminder, ‘ReFuelEU Aviation’, which is part of the ‘Fit For 55’ package presented on 14 July 2021 by the European Commission (see EUROPE 12764/10), provides for the gradual incorporation of alternative fuels for the aviation sector (SAF), the abolition, by 2027, of free quotas allocated to airlines and the introduction of compulsory taxation of kerosene on intra-EU routes, aligning it, in the long term, with the taxation of the road sector.
Furthermore, Member States were also invited to propose ways of limiting the impact of the additional cost of using SAFs.
In addition, the issue of carbon leakage was also raised by the FPEU, which recalls that some flights operated by players whose hub is located outside the EU might not be subject to the same rules as those of players based in the EU.
“For the same travel service, an airline operating from a non-European hub can have a potentially significant competitive advantage over an airline operating via a European hub”, summarises the French Presidency of the EU Council in its concept paper.
Also on this point, Member States were invited to give their opinion on the impact of the measures on the sector and to propose ways to limit it.
See the document (in French): https://bit.ly/3r6Mgrd (Original version in French by Thomas Mangin)